Dollars of Debt per Dollar of GDP PDF Print E-mail
Written by Kerry Lynch   
Friday, 20 March 2009 00:00

The chart below displays the ever-rising amount of debt per dollar of Gross Domestic Product and the components that drive it. The debt-to-dollar ratio currently tops $3.50, more than double the ratio of 50 years ago.

Dollars of Debt per Dollar of GDP

This is one of the many charts included in the 2009 edition of the AIER Chart Book. A picture is worth a thousand words, and the easy-to-understand AIER Chart Book speaks volumes. To purchase this book please visit our online bookstore.

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Comments (3)
Reply to Keith Hocter
3 Friday, 20 March 2009 23:17
veek
Dear Keith, good question. As a former budget officer in the Department of Defense (DoD), let me point out that, unless things have changed, the retirement and health plans of the DoD are within the existing budget. Each year, medical plans and a large part of the retirement programs have to compete with other items within the DoD budget, although, of course, they are fixed items and obligations which were part of the package when people signed up to put their lives on the line (and if we tell people the government is reneging on those promises, can the military or police likewise tell the government to "stuff it" when they are sent to a dangerous location?).
Unlike other "quasi-debt" and discretionary spending (like the "bailout" plan), retiree expenses can be planned for and budgeted for with some ease so their impact on inflation should be quite low. Items such as veteran's care depends on how often we ask our military to be exposed to difficult situations like war. Hope this helps.
Quasi-debt exposure
2 Friday, 20 March 2009 13:01
Keith Hocter
I'm curious what these statistics would show if they were adjusted for pension obligations and other forms of off balance sheet "quasi-debt" obligations. Obviously Social Security is huge, but federal employee and military retirement, state & local government pension, and corporate pension plans would also have a material effect, I would guess.
Dollar of Debt per Dollar of GDP
1 Friday, 20 March 2009 10:39
Gorby
I was amazed to learn the Federal Government portion is so small compared to the Domestic portion of debt. Would like to understand more completely.

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